Japan’s JBIC pledges financing for green transition projects in Vietnam

The Japan Bank for International Cooperation (JBIC) stands ready to provide financing for Japanese companies to carry out green transition projects in Vietnam within the Asia Zero Emission Community (AZEC) framework.

The pledge was made by JBIC chairman Maeda Tadashi at his meeting with Prime Minister Pham Minh Chinh in Hanoi on Sunday, the government’s news portal reported.

Prime Minister Chinh said he appreciates JBIC’s support through its policy dialogue participation and financing efforts that have helped boost Japanese investment in Vietnam’s key infrastructure and energy projects.

He also highlighted JBIC’s financing for investment projects by Japanese small and medium-sized enterprises in Vietnam. Most recently, the leader said, the bank extended a loan of over $800 million for the Block B gas development project, paving the way for its revival.

The Prime Minister urged JBIC to continue supporting Vietnam’s green transition, including the swift disbursement of financing for Japanese companies to carry out 15 green projects in Vietnam worth over $20 billion.

During his visit to Vietnam in April, Japanese Prime Minister Ishiba Shigeru affirmed that Japan wants to execute the 15 projects within the AZEC framework.

The Prime Minister said Vietnam is implementing several major infrastructure projects that could be transformational, including expressways, seaports, airports, particularly urban and high-speed rails, and nuclear power.

He called on JBIC and Japanese companies to support these efforts through financing, technology transfer, human resource training, and joint research.

Referring to the Nghi Son Refinery and Petrochemical project in the central province of Thanh Hoa – a joint venture between Vietnamese, Kuwaiti, and Japanese partners, Chinh said that while most parties are now profitable, the Vietnamese side continues to incur losses.

In response to the Prime Minister’s call for restructuring, the stakeholders have begun restructuring the project’s organization and personnel, adjusting feedstock sourcing and power supply, and cutting costs.

Lauding JBIC’s efforts to help improve the project’s situation, the leader once again called on the bank – as the project’s largest lender – and chairman Maeda himself to remain engaged and push for greater collaboration among stakeholders.

He particularly urged continued support for the project’s financial restructuring to enhance operational efficiency, guided by the principles of sincerity, trust, ans “harmonizing interests, sharing risks”, laying the groundwork for the second phase.

JBIC chairman Maeda praised Vietnam’s remarkable progress in recent years and its rising international profile, highlighting recent key resolutions by the Politburo – Vietnam’s top decision-making body – including policies to foster private sector development and advance a sustainable energy transition.

JBIC and Japanese companies are ready and eager to participate in infrastructure projects in Vietnam, including developments based on the transit-oriented development (TOD) model, the chairman noted.

Notably, Japanese firms with extensive experience have expressed strong interest in contributing to the implementation of Vietnam’s North-South high-speed railway project, he said.

Regarding challenges at the Nghi Son Refinery and Petrochemical project, he said JBIC has been actively working with all parties involved.

He personally pledged to make every effort to help identify the most appropriate solution, in line with the Prime Minister’s call for “harmonizing interests, sharing risks.”